HOUSTON — Duke Energia do Sudeste Ltda., a subsidiary of Duke Energy, today announced it will tender an offer to the minority shareholders of Companhia de Geração de Energia Elétrica Paranapanema (Paranapanema) to purchase the remaining 56.33 percent interest in the company. Duke Energy currently owns 71.27 percent of the voting shares and 43.67 percent of the total share capital of Paranapanema.

Duke Energy is offering to purchase preferred shares for R$ 11.31 per block of 1000 shares and common shares for $R 8.89 per block of 1000 shares. There are presently approximately 13 million common share blocks and 38 million preferred share blocks available. The offer is subject to the approval of the Brazilian Securities and Exchange Commission, Comissão de Valores Mobiliários (CVM).

With a total installed capacity of 2,300 megawatts, Companhia Geração de Energia Elétrica Paranapanema (Paranapanema) is among the largest private power producers in Brazil. Paranapanema’s hydro-electric plants are located on the Paranapanema River in the southwestern portion of the State of São Paulo, in close proximity to the Brazilian states of Paraná and Mato Grosso do Sul. Duke Energia do Sudeste Ltda., a subsidiary of Duke Energy, purchased it’s initial interest in Paranapanema through a public auction in July 1999.

DEI is one of Latin America’s leading energy businesses offering energy trading and marketing, risk management, natural gas and power development expertise and operations services across the region. DEI has invested approximately $1.3 billion in energy assets including: nearly 3,350 gross megawatts of hydro and thermal power generation, 125 miles of natural gas pipeline and 245 miles of electric transmission located in Argentina, Belize, Brazil, El Salvador, Ecuador and Peru.

Duke Energy International, a subsidiary of Duke Energy, is a leading investor, operator and developer of integrated energy projects in Asia Pacific and Latin America. DEl’s diverse investment and asset portfolio spans the entire energy value chain from exploration, production, gathering, processing and transportation of natural gas through to generation, electric transmission and energy trading and marketing.

Duke Energy (NYSE:DIJK) is a global energy company with more than $29 billion in assets. Headquartered in Charlotte, N.C., the company reaches into more than 50 countries, producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy companies provide electric service to approximately two million customers in North Carolina and South Carolina; operate interstate pipelines that deliver natural gas to various regions of the country; and are leading marketers of electricity, natural gas and natural gas liquids. Additional information about the company is available on the Internet at: www.duke-energy.com.